Actually in this last case, more like the FAH client screwed up and continued to fold on a previous passkey even after the passkey flag was removed from the slot and the machine rebooted, thus requiring a total uninstall, deletion of the FAH directory, and reinstall of the FAH client.

Yeah, I have found editing the config.xml file manually to work a lot better then using the 'Configure' button in v7 for Windows, and that's always been how I done it in Linux. If you don't pay attention to the "saving" notification in the GUI, which isn't very obvious, and restart your client, your changes aren't actually saved.